Is State Tax Rates Hiking Up THE PRICE TAG ON Vaporizers?
The U.S. tobacco industry is fighting back against efforts by state regulatory bodies and consumers to regulate the sale of electronic cigarettes. While vaporizers have already been around for a long time and are becoming more acceptable in mainstream American life, the tobacco companies are determined to fight these efforts vigorously. They’ve made huge amount of money attempting to defeat state taxing and regulation efforts. Now, they’re making their next move: challenging the legality of the taxation themselves. In a fresh legal filing, they’re claiming that the FDA over regulates and creates a “guaranteed” interstate transportation business. The filing is currently being contested in the courts, and both sides expect a resolution sooner or later soon.
State taxation uprights vaporizers by regulating their sale. It is estimated that about twenty states have uprights to market vaporizer devices, including California, Colorado, D.C., Florida, Hawaii, Illinois, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, and Washington. These states have become rapidly in recent years, and as a result, their cigarette tax rates may also be growing rapidly. Many of these same states likewise have placed taxes on cigar and pipe tobacco. It seems that smoking just gets more costly, and that is what the tobacco industry is shooting for.
Based on the filing with the FDA, the tobacco industry has been targeted unfairly. The tobacco industry does everything they can to fight regulation of vaporizer devices. As we’ve seen, the U.S. Supreme Court has multiple times ruled against the FDA over-regulation of cigarettes. These rulings have left the door wide open to regulation of vaporizer devices. The FDA claims that this over-regulation defeats the objective of regulating and controlling the use of vaporizers.
The fact is that the FDA itself isn’t even necessary to regulate or control these industries. Only state governments have that authority. It’s the state governments that impose their own taxes, and several states have imposed increased taxes in an effort to try to curb smoking. But the state governments are themselves at a disadvantage. They can not regulate wholesale prices since these prices are regulated by state laws. They also can’t tax the product at a higher rate than the authorities does.
Also, the FDA itself is not directly mixed up in manufacturing of the vaporizer. Tobacco companies manufacture their very own products, and they are those that get sued by the states and levied taxes. The FDA merely approves or denies manufacturer licenses based upon whether these manufacturers follow federal law. And if the manufacturer doesn’t, then your company doesn’t get its license.
So, the states that do impose taxes on vaporizer devices don’t get the advantage of having a federal regulator, or perhaps a manufacturer that’s licensed by the state. So, instead, they find ways to increase taxes on the manufactures themselves! That makes no sense. Why JUUL Pods are these manufacturers being targeted specifically? There’s no real reason.
THE MEALS and Drug Administration may be the federal body responsible for regulating pharmaceuticals, health supplements and cosmetics. It has the power to ban the production or sale of any chemical or substance that it determines is unsafe. So, why are states attempting to tell the FDA to focus on Vaping online users instead of tobacco manufacturers? The FDA knows that regulating weight loss supplements isn’t likely to work because there are no controlled weight loss supplements currently out there. And, even if there were, they couldn’t force food manufacturers to sell diet pills containing ingredients that are banned by state law.
So, instead, the states want to force the FDA to create some kind of rule or regulation which will require a manufacturer to sell their devices in a particular manner, according to state regulations. That makes no sense at all. It also flies when confronted with the original purpose of the Food Drug and Administration Act. Why the FDA is targeting the unit is a question that only experts in the FDA can answer.